David Chojnacki S1F Market Technician
Once again investors ignored economic reports and propelled the major indices to new highs right after the open. By late morning, the averages settled into a trading range and remained there until the FOMC report. Though there was nothing dramatically new in the statement, the averages gradually began to sell-off into the close. At the close, the DJIA dropped 0.39%, the S&P slipped 0.49%, and the Nasdaq100 gave up just 6.3 points. Breadth was decidedly negative, 2.4 to 1, on below average volume. RSI's slipped, with the Nadsaq100 and S&P moving just below 70. ROC(10's) declined for the second straight session, indicating the slowing of momentum, but remaining in positive territory. All three major indices made new intra-day highs early in the session, but no new closing highs after the late day sell-off. We noted in the last report that the near term technicals were getting a little over-bought and yesterday's action removed some of the frothiness. The S&P met resistance at 1775, as we noted that there is some formidable resistance at that level. IWM(Russell small-caps) gave up 1.3% in the session and was one of the bigger losing index trackers. The VIX gained 1.7%, finishing at 13.65. The S&P near term support remains at 1762 and 1745-50. Near term upside resistance continues at 1775 and 1788. The Nasdaq100 near term support now sets up as 3375 and 3362. Near term upside resistance sets up as 3388 and 3400. Overseas markets are lower in early trade. We get more information on the employment scene as Claims numbers are reported before the market opens. Futures are lower this morning versus fair value in pre-market trade.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Personal Income/Spending-8:30am PCE Prices-8:30am Chicago PMI-9:45am NatGas Inv.-10:30am
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